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The CFO at Rabbit Corporation has asked you to analyze two proposed capital investments, Projects A and B. Each project has a cost of $10,000,

The CFO at Rabbit Corporation has asked you to analyze two proposed capital investments, Projects A and B. Each project has a cost of $10,000, and the cost of capital is 12% for each. The projects expected net cash flows are as follows:

Expected Net Cash Flows

Year

Project A

Project B

0

(10,000)

(10,000)

1

6,500

3,500

2

3,000

3,500

3

3,000

3,500

4

1,000

3,500

  1. Calculate each projects payback period.
  2. Calculate each projects net present value (NPV).
  3. Calculate each projects internal rate of return (IRR).
  4. Calculateeachprojectsprofitabilityindex(PI).

PLEASE SHOW WORK IF POSSIBLE !!!!!

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